Manhattan District Attorney Alvin L. Bragg Jr. has unveiled a 26-count indictment against Alan Burak, a 40-year-old accused of orchestrating a multi-million dollar investment fraud scheme through his firm, Never Alone Capital, LLC. Burak allegedly deceived investors, including friends, family, and members of the Latino community, to invest over $4 million for his personal use. This scam ran from April 2018 through May 2023, as reported by the Manhattan District Attorney's Office.
Charged with grand larceny and securities fraud among other charges, Burak is accused of having lied about the performance and assets of Never Alone Capital. He claimed the company, which started in 2006, was consistently profitable and managed $157 million when, in fact, it had received no more than $5 million from investors. D.A. Bragg, regarding the allegations, said, “As alleged, Alan Burak targeted those who would put their faith in him and entrust him with their savings: friends and family in Mexico, and members of the Latino community who came to him for financial advice.” Burak's victims were enticed with promises of high rates of return, in one case up to 50% in just three months, according to the same press release.
To maintain the appearance of success, Burak allegedly provided investors with fraudulent "Account and Activity Statements" showing that their investments were growing. This illusion persuaded some to invest even more. However, court documents reveal that funds were not being invested as promised; over $5 million instead found its way to Burak's personal savings account, covering various personal expenses. As part of the deceit, Burak also falsified documents from a brokerage firm falsely claiming Never Alone Capital had over $197 million in assets, while in reality, the brokerage account never exceeded a $27,500 balance.
The scheme started to unravel as investors stopped receiving their due payouts. Despite account statements showing available funds, withdrawal requests were denied. When pressed, Burak sometimes offered payment plans or bounced postdated checks. Burak purportedly stopped allowing investors to withdraw funds by 2023, despite repeated requests and continuous showing of positive balances on provided statements. “Those who take advantage of others to steal their hard-earned money will be held accountable. This is an ongoing investigation. Please call our Financial Frauds Bureau at 212-335-8900 if you are a victim,” Bragg affirmed in his statement regarding the case's progress, as noted by the Manhattan District Attorney's Office.
The extensive team, including Assistant D.A.s Michael Luongo, Elyssa Abuhoff, and Anne Ternes, and a host of investigators, analysts, and financial specialists, have been credited for their role in uncovering the operation. Furthermore, the DA's office expressed gratitude towards the collaborative assistance received from the U.S. Securities and Exchange Commission, FINRA, various financial institutions, and the U.S. Marshals Service in what remains an ongoing investigation.
